Why Is Trupanion (TRUP) Stock Down 32% Today?


  • Trupanion (TRUP) stock is falling with its Q1 2023 earnings report.
  • The company missed earnings per share estimates for the quarter.
  • However, revenue was better than expected.
TRUP Stock - Why Is Trupanion (TRUP) Stock Down 32% Today?

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Trupanion (NASDAQ:TRUP) stock is taking a beating on Friday after the pet medical insurance company released its earnings report for the first quarter of 2023.

The bad news for TRUP stock comes from its diluted earnings per share of -60 cents. That’s nowhere close to Wall Street’s estimate of -28 cents for the quarter. Additionally, it’s wider than the -3 cents reported in the same period of the year prior.

However, Trupanion did report revenue of $256.3 million during the first quarter of the year. That’s above the $252.37 million that analysts were looking for during the quarter. It’s also a 24% jump from the $206 million reported in Q1 2022.

Darryl Rawlings, founder and CEO of Trupanion, said this in the earnings report:

“In Q1, veterinary inflation increased 15% year-over-year, approximately 3% higher than our assumptions. While these ongoing but necessary increases in veterinary inflation pressured margins in the quarter, they also continued to drive demand for Trupanion, as evidenced by our strong revenue growth. The entire Trupanion team is focused on successfully executing the second half of our 60-month plan and achieving our margin targets.”

TRUP Stock Movement on Friday

Following the mixed earnings news, shares of TRUP stock are seeing decent trading this morning. That has some 373,000 shares of the stock changing hands as of this writing. For comparison, the company’s daily average trading volume is about 838,000 shares.

TRUP stock is down 31.9% as of Friday morning.

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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Article printed from InvestorPlace Media, https://investorplace.com/2023/05/why-is-trupanion-trup-stock-down-32-today/.

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